Sudan Corporate Tax Guide 2026

Overview — Corporate Taxation in Sudan

Corporate income tax in Sudan is governed by the Taxation Act and administered by the Sudan Tax Authority (STA). Resident companies are taxed on worldwide income, while non-resident companies are taxed only on Sudanese-source income. A company is considered tax resident if it is incorporated in Sudan or has its place of effective management in Sudan. The tax year follows the calendar year. Corporate tax returns must be filed within four months of the end of the fiscal year. Sudan has a relatively high standard corporate tax rate of 30%, but strategic sectors benefit from reduced rates and incentives.

Standard Corporate Tax Rate — 30%

The standard corporate income tax rate in Sudan is 30%, applicable to most resident companies and permanent establishments of foreign companies. Key features:

• The 30% rate applies to all resident companies and branches of foreign entities
• No surtax or additional municipal taxes on corporate income
• Branch profits of foreign companies are subject to the same 30% rate
• A separate branch remittance tax may apply on repatriated profits

Oil and Gas Sector — 35–40% Rate

The oil and gas sector is subject to special tax provisions under production-sharing agreements (PSAs) with the Ministry of Energy and Oil. Corporate tax rates for oil and gas companies are determined on a contract-by-contract basis but generally range between 35% and 40% of the contractor's share of production. The exact rate depends on the terms negotiated in each PSA. Sudan's oil sector is a major contributor to government revenue, and the higher tax rate reflects the resource-extraction nature of the industry.

Reduced Rates for Strategic Sectors

Under the Investment Encouragement Act 2021, certain strategic sectors benefit from reduced corporate tax rates:

• Agriculture and livestock: Reduced rate of 10% for qualifying agricultural projects
• Manufacturing and industry: Reduced rate of 10–15% for approved industrial projects
• Renewable energy: Reduced rate of 10% for solar, wind, and hydropower projects
• Export-oriented enterprises: Reduced rate of 10% for businesses exporting at least 70% of production

These incentives are administered by the Ministry of Investment and require project approval with specific conditions, including minimum capital thresholds and employment targets.

Investment Incentives and Tax Holidays

Sudan offers several tax incentives to attract foreign direct investment:

• Tax holiday: 5–10 year exemption from corporate tax for strategic projects in priority sectors
• Customs exemptions: Exemption from customs duties on imported machinery, equipment, and raw materials for approved projects
• Land allocation: Subsidised land leases in industrial zones
• Loss carryforward: Tax losses can be carried forward for up to 5 years
• Accelerated depreciation: Enhanced depreciation allowances for capital-intensive investments

These incentives are available to both domestic and foreign investors and are designed to promote economic diversification away from oil dependence.

Transfer Pricing Rules

Sudan has introduced transfer pricing regulations aligned with OECD guidelines. Key requirements:

• All related-party transactions must be conducted at arm's length
• Transfer pricing documentation is required for transactions exceeding threshold amounts
• The STA may adjust prices and impose penalties for non-arm's-length pricing
• Specific guidance covers related-party loans, services, and intangibles

FAQs

What is the corporate tax rate for small businesses?

Small businesses with annual turnover below SDG 10 million may benefit from simplified tax regimes. A presumptive tax regime applies to very small businesses, with tax calculated on deemed profits rather than actual accounts.

Are dividends paid by a Sudanese company taxable?

Dividends paid by Sudanese companies are subject to a 10% withholding tax. Inter-corporate dividends may be exempt under specific conditions.

Can losses be carried forward?

Tax losses can be carried forward for up to 5 years from the year the loss was incurred. Loss carryback is not permitted.

Disclaimer

This guide provides general information about Sudanese corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Sudanese tax advisor or the Sudan Tax Authority directly for advice specific to your business. InvestmentKit does not provide tax advice.